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  • OpenAI on track to generate more than $1 bln revenue over 12 months

OpenAI on track to generate more than $1 bln revenue over 12 months

Also: Announcing the complete AI Stage agenda at TechCrunch Disrupt 2023

Welcome!

Today's newsletter brings you an array of headlines reflecting the rapid advancements and discussions occurring in the AI sector. OpenAI has significantly exceeded its revenue projections, largely driven by the success of products like ChatGPT and a sizable investment from Microsoft, as it gears up to hit the $1 billion mark within a year. On the regulatory front, the EU AI Act is setting the stage for comprehensive governance of AI technologies, prompting debates about its potential impact on innovation. Meanwhile, Fox Sports is leveraging Google Cloud's generative AI capabilities to revolutionize its content creation process, making it quicker and more efficient. TechCrunch Disrupt 2023 is also set to host a dynamic array of discussions on AI's role in various sectors, including its ethical implications. Finally, new tools and venture capital updates underscore the growing emphasis on accountability and practical applications in AI. Keep reading for a deeper dive into these compelling stories.

Sliced:

  • 📈 OpenAI on track to generate more than $1 bln revenue over 12 months

  • 👩🏻‍⚖️ The AI Act explained

  • ⚽️ Fox Sports Taps Google Cloud for Generative AI Capabilities

  • ğŸŽ¤ Announcing the complete AI Stage agenda at TechCrunch Disrupt 2023

OpenAI is on track to exceed $1 billion in revenue over the next year, a significant increase from its earlier projection of $200 million for this year, according to a report by the Information. Driven by the sale of AI software like ChatGPT and computing capacity, the company is now generating over $80 million per month, a steep rise from its $28 million revenue last year. The Microsoft-backed firm also monetizes through selling API access to its AI models, benefiting from a substantial investment of over $10 billion from Microsoft earlier this year. The growth reflects the increasing investor interest in generative AI as a key growth area in tech.

👩🏻‍⚖️ The AI Act explained

Proposed in April 2021 and voted on by the European Parliament in June 2023, the EU AI Act aims to be the first comprehensive regulatory framework for AI in the EU, targeting safety, transparency, traceability, non-discrimination, and environmental friendliness. Adopting a risk-based approach, the Act categorizes AI applications as having unacceptable, high, or limited/minimal risk, and sets forth specific regulations or bans accordingly. For instance, AI systems with "unacceptable risks" such as behavior manipulation tools will be prohibited. The Act also covers generative AI models, requiring them to adhere to transparency norms. While it aims to strike a balance between innovation and regulation, the Act has sparked controversy, with many in the business community warning that it could stifle innovation and competitiveness. There is also concern about the lack of international consensus on AI regulation, which could lead to a fragmented digital landscape. The Act is expected to become binding between late 2023 and 2024, with a grace period of up to 36 months for full implementation.

Fox Sports has expanded its partnership with Google Cloud to incorporate generative AI technology into its content creation process, aiming to quickly and efficiently search and produce content from its extensive archive of 1.9 million videos. Leveraging Google Cloud's Vertex AI Vision system, Fox Sports can automate the otherwise labor-intensive tasks of tagging and searching video content, thereby streamlining its media management workflows. This move builds upon Fox Sports' Intelligent Asset Service (IAS), initiated in 2020, which uses Google Cloud's machine learning to manage media assets. The collaboration aims to optimize content production and enhance viewer engagement across various platforms, including TV, social media, and marketing content.

The AI Stage at TechCrunch Disrupt 2023 will feature a diverse range of discussions covering the rapidly evolving AI industry. Key stakeholders, including industry leaders, startups, skeptics, and investors, will delve into critical topics such as the viability of high AI valuations, ethical considerations, AI's move to personal devices, and its role in misinformation. Panels will address both the promise and pitfalls of AI in sectors such as cloud computing, entertainment, robotics, and supply chain management. Experts will debate whether AI can balance profitability with ethical and safety concerns, while case studies will highlight real-world applications that demonstrate AI's transformative potential.

🛠️ AI tools updates

Google DeepMind has unveiled SynthID, a new watermarking tool to label AI-generated images, making it the first Big Tech company to publicly do so after a White House commitment to develop such tools. Integrated initially with Google's AI image generator Imagen, SynthID employs two neural networks to embed a nearly invisible pattern in the images, which can later be detected even if the image is altered. The tool aims to counter issues like deepfakes and copyright infringement, but has received mixed reactions for its proprietary nature and potential vulnerability to tampering. Critics and experts highlight the need for broader, more robust watermarking solutions, as well as more information-sharing in the AI community.

💵 Venture Capital updates

ControlRooms.ai, an Austin-based startup, recently secured $10 million in an oversubscribed Series A funding round to enhance its AI-driven industrial manufacturing troubleshooting platform. Founded in 2021, the company aims to modernize the outdated and inefficient troubleshooting process in heavy industries like chemical and energy plants by providing actionable insights to prevent unplanned downtime, which costs the sector an estimated $50 billion annually. The startup distinguishes itself by offering a solution specifically designed for process engineers and operations personnel, rather than a general-purpose AI platform. With its new capital, ControlRooms.ai plans to accelerate product development and expand its reach in the U.S., Asia, Germany, and the Middle East, while also researching how to incorporate generative AI capabilities for more advanced predictive applications.

🫡 Meme of the day

⭐️ Generative AI image of the day